The Weekly Economic & Real Estate Forecast – 04/06/15 to 04/10/15

The Windermere Economist

What I Saw Last Week

Income & Spending data for the U.S. showed incomes rising by 0.4% and spending up by 0.1%. I had forecast incomes to rise by 0.3% and spending by 0.2%.

Income and spending

Income and spending2

The increase in income was in-line with the 0.4% increase in aggregate earnings that was reported in the February employment report so no big surprise there. What is of greater interest to me is that all of the increases in consumer sentiment over the past several months has not translated into accelerated spending. Instead, consumers have opted to raise their personal savings rate, which now stands at 5.8% and is up from 5.5% in February and 4.4% in November. 

Even more disappointing is the fact that the entire increase in spending was a result of a rise in prices. Real spending declined 0.1% in February after increasing 0.2% in January.

In summary, savings rose as spending…

View original post 928 more words

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s